Let me start with the question of the title, ETF is never bad, and as a matter of fact, it will give Bitcoin more relevance. However due to the way Bitcoin was created and its function and operation as well, the ETF may not be as important as people believe it to be compared to how it is so important with Crude oil, Gold etc.

Bitcoin is structured in a different way like never before and with or without ETF, Bitcoin will continue to gain popularity, and adoption and attract investors. The extensive benefits from the ETF, in the long run, will naturally be directing more investment into it. But this will only be in a way as those who are afraid to buy, hold and manage their Bitcoin themselves or are afraid about the privacy and decentralization of the asset, will join due to the ETF. It will help in this regard since the ETF will make Bitcoin to be more centralised even as the system itself is decentralised. This will also naturally means that the government can oversight the activity better than though it was moving within the core Bitcoin plans of non-custodial approach. This will help them cool their nerves as well.